For many people, the COVID-19 pandemic has led them to reassess various aspects of their lives. One of these aspects is the need to own their personal vehicle, specifically a car. It’s primarily due to the extensive travel restrictions, the rise of remote working culture, and financial constraints. As an alternative to vehicle ownership, car subscription services have risen in importance. A Car Subscriptions Platform allows businesses with an overview of every subscriber and every payment, thus giving them complete control over their subscription platform. But how do they really work? Keep reading to know more about them and for whom they are appropriate.
Car Subscription – What Is It?
A car subscription service enables people to pay a certain fee to use a particular vehicle for a specific period. They don’t need to buy or lease a car. These services are often provided via a car dealer or a manufacturer. They can also be offered via a third-party provider. For many people, this ability to pay when they need a car is very convenient and flexible. It is why car subscription services are becoming so popular, especially during the pandemic.
How Does a Car Subscription Service Operate?
Although there are numerous car subscription services, not all of them work similarly. If you are using a third-party service, you will have to sign up online, select a specific car from a list of different models, sizes, and makes, and then pay monthly or weekly to subscribe to that vehicle. It is very similar to the way you subscribe to Spotify or Netflix. Note that the amount you pay will consist of the price for servicing, registration, insurance, and roadside support. It may or may not include the cost of petrol and other extra expenses.
How Does a Car Subscription Differ from a Car-Sharing Service and a Car Leasing Service?
Car sharing services enable people to access various cars in their place for a short period, like for an hour or a day. The user then has to return it. On the other hand, when you avail of a car subscription service, you have full access to a particular vehicle for a more extended time.
In a car lease, the user enters into a contract for a particular term to lease a car. This term can be anywhere from two to five years. They usually have to wait till the end of the lease term to return the vehicle or upgrade to a recent model. If the user cancels their contract before completing the lease term, they are liable to incur extra charges. On the contrary, in a car subscription, your commitment can be as short as a week. You also have the freedom to cancel your subscription anytime you wish by giving a notice period. You can also change to another car if your needs and requirements change.
For Whom Is a Car Subscription Service Appropriate?
Today, businesses can avail a car Subscriptions Platform that gives them world-class security, along with secure direct debit and credit payments that are PCI compliant. Car subscription services suit well to those who are not inclined to take the entire yearly insurance and registration expenses that come with owning an automobile. They are also a good option for trying a particular car model before actually purchasing it.
As pandemic shows no sign of abating, people are finding these subscription services to be quite helpful. If you are planning to choose one, consider your needs and budget carefully before making the final decision.